In explaining today’s take-down in the metals, Michael said, “Listen to all the talk you hear about austerity in Washington. What happens to the price of gold when you hear this? It goes down…You hear talk about austerity, and you hear talk now because of the jobless claims, that the fed might stop [monetizing], and gold gets crushed…The idea that Bernanke is going to start increasing interest rates, and start to shrink his balance sheet is ludicrous, and I believe that this is just another false worry for the gold market.”
Michael Pento, President and founder of Pento Portfolio Strategies was kind enough to take my call on a day when gold, silver, and mining shares are completely falling apart.
“When in the history of investing, ” Michael continued, “have you ever had the entire developed world’s central bankers, increasing in unison, inflation targets? These balance sheets are growing tremendously fast, their economies are not healing, real interest rates are profoundly negative…Everyday that goes by it’s further cemented in my mind how you must reject these fiat currencies, and seek another form of money that the government cannot corrupt. And that’s precious metals.”
When asked his biggest fear in the marketplace at this time, Michael concluded with, ”My biggest fear right now, as far as what could totally derail the economies of the globe…is the bursting of the credit bubble…it could be central bank induced. Central bankers could come out and say we’re no longer going to monetize debt, we’re no longer going to allow these governments to run these 10% per annum deficits, and you would see a massive spike in interest rates overnight that would crumble the economies of the developed world into a deflationary depression…that’s my biggest fear.”
Today’s timely interview with Michael Pento provides investors a realistic (albeit frightening) look at today’s teetering global economy. It is required listening for investors and serious market students.
To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to your desktop:
Enjoy the interview? Please support the site by sharing this URL page link with friends, family, and your favorite chat forum.
Tekoa Da Silva
Bull Market Thinking